What to Know Before Buying a Franchise
Buying a franchise can be confusing because of the variety of franchise models and the enormous amount of information that is available. The options may be overwhelming and finding a company with a culture that fits you is one strong component of success. Many entrepreneurs are looking to be their own boss but do not necessarily know how to start a business from scratch. For many, franchising is a practical route. This paper is intended to help anyone considering franchise ownership make an educated decision with both feet planted on solid ground.
What’s Involved with Owning a Franchise?
Owning Your Own Business
The American dream of business ownership is the most common route taken by a substantial number of successful entrepreneurs. However, getting to ownership seems to be an elusive and complex dream for many. The benefits should outweigh the challenges, but if they do not, perhaps owning your own business isn’t the route for you.
The advantages to owning a business that can change your life:
- Independence from a boss setting your schedule
- Freedom from worrying about having a job tomorrow
- Flexibility to work the hours you choose
- Pride in the work you do because you are helping others
- Stimulation from daily challenges, no dull office routine
- Leadership, the ability to mentor and motivate others can be extremely fulfilling
The challenges to owning a business can be the breaking point for those going it alone:
- Finding the finances to back your business
- Legal issues such as contracts, trademarks, rental agreements, etc.
- Hiring and training staff to run your business
- Building a brand takes a lot of time and money
The Franchise Model
One reason franchise ownership is growing so rapidly is due largely to the fact that a franchise model provides you with a system that addresses the challenges of owning a business. You are instantly buying into a proven business model, typically with financial assistance, marketing plans and training available.
The very basis of the franchise model addresses another challenge of business ownership – branding. When you enter a business relationship as a franchisee, you are getting permission to operate a business under the trademark of the established business (franchisor). Essentially a franchisee is running a business using the concept and success of the franchisor’s brand and operating methods.
Even though the franchisor has created and set up the actual business model, the franchisee is still considered an independent business owner. Day-to-day operations of running a business are left up to the franchisee. Handling the local media, promotions, hiring, maintenance of the building, bank accounts and various multitasking are the sole responsibility of the franchisee.
Download the PDF guide to learn more.